Home / Crime and Justice / AI Chatbot Accused of Unauthorized Legal Practice
AI Chatbot Accused of Unauthorized Legal Practice
5 Mar
Summary
- OpenAI faces lawsuit for allegedly practicing law without a license.
- A former claimant used ChatGPT to reopen a settled disability case.
- The insurer claims significant costs responding to AI-generated filings.
OpenAI is being sued for allegedly practicing law without a U.S. license. The lawsuit, filed in federal court in Chicago, contends that ChatGPT provided unauthorized legal assistance to a woman attempting to reopen a previously settled disability claim.
Nippon Life Insurance Company of America, the plaintiff, stated that OpenAI's chatbot validated the woman's concerns and encouraged her to pursue her closed case. Nippon claims it spent considerable resources and incurred substantial fees responding to numerous meritless filings drafted by ChatGPT, which they argue served no legitimate legal purpose.
The case stems from filings made after the woman settled her long-term disability benefits suit in January 2024. Nippon alleges that the woman, after uploading an email from her lawyer into ChatGPT, subsequently fired her attorney and used the AI to try and reopen her case.
Although OpenAI amended its policies in October to prohibit using its platform for legal advice, the lawsuit claims such prohibitions did not exist previously. Nippon seeks an order declaring OpenAI violated Illinois' unauthorized practice of law statute, along with $300,000 in compensatory and $10 million in punitive damages.
